Lead:
Lead: Sharp shifts in investor demographics and monetary power could push bitcoin prices to new highs, data suggest. Also, institutions will play an important role as they can provide the easiest entry point for new retail and institutional investors to invest in Bitcoin. Investing in Bitcoin as a new asset class is absolutely true.
Text: ANTÓNIO MADEIRA, Compiler: Zion, Editor in charge: Rose
Bitcoin (BTC) has been trading sideways for a month or so while several other altcoins such as Ethereum (ETH) and Chainlink (LINK) have outperformed Bitcoin. Bitcoin has seen its lowest volatility since November 2018.
Additionally, according to CryptoCompare, Bitcoin’s USDT and USD trading volumes fell by 56% and 44%, respectively, while global cryptocurrency trading volumes also fell by 49.3% in June.
While some point to these key factors as the start of a downtrend in Bitcoin’s price, there are still some bullish scenarios to watch. A recent report from Stack Funds found that changes in investor demographics could soon push the price of Bitcoin to new highs.
As millennials reach the pinnacle of investment maturity, we believe this tech-savvy cohort will drive a major shift in investor demographics, which in turn will increase propensity to invest in Bitcoin.
Bitcoin ownership by age group Source: Stack Funds
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Are Baby Boomers Buying Bitcoin?
The report also pointed to the growing interest in Bitcoin and digital assets among other generations, a phenomenon that could further cement Bitcoin’s status as an investment asset class.
According to a survey of Canadian citizens, the percentage of baby boomers (ages 56 to 76) who hold bitcoin has recently tripled. The U.K.’s Financial Conduct Authority (FCA) came to similar results in a recent research report, which found a significant increase in Bitcoin holdings among people over the age of 35.
A shift in investment power to a new generation, along with growing interest in bitcoin from older investors, could help propel bitcoin prices to new heights.
However, institutions will also play an important role as they can provide the easiest entry point for new retail and institutional investors to invest in Bitcoin.
According to the report:
There is currently no shortage of options for institutions of all kinds to get involved, including for those looking to invest their retirement savings in Bitcoin.
Younger investors favor socially responsible investing
A recent survey by Morgan Stanley revealed that more than 80% of investors want to invest in a socially conscious way, meaning, they prefer to invest their money in ways that have a positive impact on the world and society Affected items.
Not only are millennials more technologically gifted, but they are also showing increased concern about social issues such as racism and climate change, and perhaps financial inclusion may soon become one of their focuses.
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